Gwadar Port & Free Zone: An Emerging Global Business Hub

Company Introduction

Gwadar Port & Free Zone (a leading flagship project of China Pakistan Economic Corridor) has been handed over to M/S China Overseas Ports Holding Company Pakistan (Pvt.) Ltd. (COPHC Pakistan) under a Concession Agreement for the period of 43 years.

COPHC PAKISTAN (a wholly owned subsidiary of COPHCL Hong Kong) has been granted a 43 years concession to manage and operate Gwadar Port & Gwadar Free Zone. The COPHC has diversified interests in the field of Maritime, Logistics & Trade development, and is supported by following three operating companies:

-- GWADAR INTERNATIONAL TERMINALS LIMITED (GITL)

-- GWADAR MARINE SERVICES LIMITED (GMSL)

-- GWADAR FREE ZONE COMPANY LIMITED (GFZCL)

Significance Of Gwadar Port

On the shores of the Arabian Sea in the western province of Balochistan/Pakistan, a warm water natural deep-sea port Gwadar is strategically located at the mouth of the Persian Gulf, just outside the Straits of Hormuz, near the key shipping routes accommodating a flow of more than 17-million-barrel oil per day and a large quantity of bulk, break-bulk and containerized cargo.

The recent developments of Gwadar Terminal:

-- Establishment of regular/weekly container liner service of COSCO Shipping at Gwadar Port.

-- Installation of five (5) new STS (Ship to Shore) Multi-purpose Gantry Cranes.

-- Repair & operationalization of RTG (Rubber Tired Gantry) and other cargo handling equipment.

-- RO Plant (100,000 gallons per day capacity) for Fresh Water Supply to the Ships calling at Gwadar Terminal.

-- Establishment of regular trade; Export of local Fish & Seafood from Gwadar Terminal.

-- Operationalization of WeBOC (online goods declaration through fully integrated computerized Customs Clearance System).

Gwadar Free Zone

COPHC proudly presents the Pakistan's first and exclusive Free Zone with extraordinary and exceptional facilities for investors. The Gwadar Free Zone Company Ltd. (GFZCL) shall bring extensive economic benefits such as Exemption on Duties, Tax Holiday for 23 years and Land Lease of up to 99 years to the upcoming businesses.

The total area earmarked for Gwadar Free Zone is 923 Hectares (2,282 acres) immediately west of existing multipurpose terminal and the planned container terminal. The Zone is an integral part of the port and is designed to ensure the optimum utilization of port infrastructure. The Zone sits next to the Gwadar Port which is going to become a future transit and trans-shipment hub.

The South Area of the GFZ (60 acres) is included in Phase-I project (i.e. Initial Area), which develops as a Commercial Logistics Zone with the leading functions of Commodity Exhibition, Transit and Distribution relying on the existing port, as well as five (5) Industrial Units. The work on Initial Area (GFZ Phase-I) has been completed & successfully inaugurated on 29th January 2018. Recently established businesses of Gwadar Free Zone Phase No1:

-- Business Center by China Construction and Communication. Company (CCCC).

-- JOLTA Tech Co. Ltd., Pakistan.

-- Pak-Afghan Cargo Series Ltd.

-- Zhejiang Litchi Stainless Steel Tube Factory.

-- Ningbo Huilong Renewable resources technology co. Ltd.

-- Delight Food Industry Co. Ltd., Pakistan.

-- Tianjin Cereal & Oil Trade Co. Ltd.

-- Exhibition Center by Linyi Trade City Overseas Investment (Pakistan) Co. Ltd.

-- Zhong Guo Yu Fei International Fishery (Gwadar) Co. Ltd.

-- Habib Bank, United Bank, EFU Insurance and many other Pakistani financial, logistic and trade service providers.

The dedicated utilities services e.g. electric power plant with production capacity of 7.5 MW and water desalination plant with 0.3 million capacity has been set up in Free Zone to facilitate the investors. On 6th May, 2018, COPHC signed a memorandum for the supply of fresh water to the Gwadar City.

Processing and manufacturing areas are being developed in the North Area and divided into sub-zones. Daily necessities and small household appliances, fishery, stone processing, transportation machinery manufacturing and metal processing are the main introduced industries. Tax exemption policy has been adopted in the development of bonded logistics. The GFZ expected to emerge as a new economic engine in the western region of Pakistan. The Gwadar Free Zone during the initial construction and production phase (2018-23) will provide job opportunities for more than 38,000 people and would assist increasing Pakistani's trade volume, FDI and national economy size.

Copyright Business Recorder, 2019